Pakistan Healthcare System

 

Why Pharmacy Sales Are Challenging in Pakistan

Pharmacy sales in Pakistan are a crucial part of the country’s healthcare system. However, the industry faces numerous challenges that make it difficult for businesses to thrive. From regulatory hurdles to economic instability, the pharmacy sector encounters several roadblocks that impact its growth and sustainability. This article explores the key reasons why pharmacy sales are challenging in Pakistan and what can be done to overcome these issues.

Pakistan healthcare system

Pakistan healthcare system

1. Strict Regulatory Framework

One of the biggest challenges facing the pharmacy industry in Pakistan is the strict regulatory environment. The Drug Regulatory Authority of Pakistan (DRAP) imposes stringent guidelines on the sale, distribution, and pricing of medicines. While these regulations are meant to ensure safety and quality, they often create obstacles for pharmacies trying to maintain profitability.

Price Fixation Policies: The government controls the pricing of medicines, which limits the profit margins of pharmacies. In many cases, pharmacies are forced to sell medicines at low prices despite rising costs.

Licensing Issues: Opening a pharmacy requires multiple approvals and compliance with legal formalities, which can be time-consuming and expensive.

Frequent Policy Changes: The pharmaceutical industry is heavily regulated, and frequent changes in laws create confusion and compliance challenges for pharmacy owners.

Pakistan healthcare system

2. Economic Instability and Inflation

Pakistan’s economy has been facing high inflation and currency devaluation, making it difficult for Pharmacies to maintain profitability. The rising cost of medicines and operational expenses reduces the affordability of medicines for the general public, leading to lower sales volumes.

Imported Medicines Are Expensive: Since many essential medicines are imported, the depreciation of the Pakistani rupee increases their prices.

Rising Operational Costs: Rent, utility bills, and salaries have increased, making it difficult for small pharmacies to sustain their business.

Decreased Consumer Purchasing Power: Due to inflation, many people struggle to afford medicines, leading to lower sales.

Pakistan healthcare system

3. Lack of Awareness and Self-Medication

In Pakistan, many people do not visit pharmacies for professional consultation. Instead, they rely on self-medication, home remedies, or traditional treatments. This trend negatively impacts pharmacy sales because:

People avoid buying prescribed medicines and opt for over-the-counter (OTC) drugs.

Many patients prefer unlicensed dispensers who sell medicines without prescriptions at lower prices.

There is a general lack of awareness about the importance of buying medicines from licensed pharmacies.

Pakistan healthcare system

4. The Rise of Unregulated and Illegal Pharmacies

Illegal and unregulated pharmacies are a significant problem in Pakistan. These unlicensed medical stores sell medicines without proper authorization, often at lower prices.

Counterfeit and Smuggled Drugs: Many unregulated pharmacies sell counterfeit, expired, or smuggled medicines, which are cheaper and attract more customers.

No Quality Control: Unlike licensed pharmacies, these stores do not follow safety protocols, but their affordability draws customers away from legal businesses.

Lack of Prescription Enforcement: Many illegal stores sell prescription-only medicines without requiring a doctor’s prescription, making them more attractive to customers who want easy access to drugs.

Pakistan healthcare system

5. Limited Access to Financing and Investment

Pharmacy businesses require substantial investment to stock medicines, maintain inventory, and ensure smooth operations. However, limited access to financial support makes it difficult for entrepreneurs to expand their pharmacy businesses.

High Interest Rates: Banks and financial institutions offer loans at high interest rates, making it challenging for small pharmacy owners to get funding.

Lack of Government Support: There are no major financial incentives for pharmacy businesses, unlike other sectors that receive subsidies or tax benefits.

Difficulty in Expanding Business: Due to financial constraints, many pharmacies struggle to expand their operations, open new branches, or introduce better services.

Pakistan healthcare system

6. Competition from Online Pharmacies

With the rise of e-commerce and online pharmacies, traditional pharmacies are facing stiff competition. Many people now prefer ordering medicines online due to convenience, discounts, and home delivery services.

Online Pharmacies Offer Lower Prices: Many online platforms provide discounts, making it difficult for physical pharmacies to compete.

Convenience of Home Delivery: Customers prefer doorstep delivery instead of visiting a pharmacy.

Trust Issues with Physical Pharmacies: Many people believe that online pharmacies provide more authentic medicines compared to local medical stores.

Pakistan healthcare system

7. Poor Supply Chain Management

Pharmacies in Pakistan often struggle with supply chain issues, leading to medicine shortages, delays in deliveries, and stock management problems.

Shortage of Essential Medicines: Due to import restrictions, currency devaluation, and supply chain disruptions, pharmacies sometimes cannot stock necessary medicines.

Dependence on Wholesalers: Many small pharmacies rely on third-party wholesalers, which can cause delays and price fluctuations.

Storage Issues: Proper storage facilities are essential for maintaining medicine quality, but many pharmacies lack adequate infrastructure.

Pakistan healthcare system

8. Lack of Professional Pharmacists

A significant issue in the pharmacy industry is the shortage of qualified pharmacists. According to regulations, every pharmacy must have a registered pharmacist, but many small pharmacies fail to meet this requirement.

Shortage of Skilled Professionals: There are not enough trained pharmacists in Pakistan, making it difficult for businesses to hire qualified staff.

Low Salaries for Pharmacists: Many pharmacy owners prefer hiring unqualified staff at lower salaries, which affects the quality of service.

Lack of Public Trust: Customers are hesitant to seek medical advice from pharmacies due to the absence of professional pharmacists.

Pakistan healthcare system

9. Smuggling and Counterfeit Medicines

The presence of smuggled and counterfeit medicines in the market is a major challenge for legal pharmacies. These illegal products are often cheaper, attracting customers who prioritize cost over quality.

Health Risks: Counterfeit medicines pose serious health risks, yet they continue to circulate due to weak law enforcement.

Undermining Legal Businesses: Legal pharmacies struggle to compete with vendors selling counterfeit drugs at lower prices.

Lack of Government Crackdown: Despite efforts, the government has not been able to completely eliminate the sale of counterfeit drugs.

Pakistan healthcare system

10. Changing Consumer Behavior and Brand Loyalty

Many customers in Pakistan prioritize cost over brand quality when purchasing medicines. Instead of trusting well-known pharmaceutical brands, they opt for cheaper generic alternatives, reducing pharmacy profits.

Preference for Generic Medicines: People often buy local or unbranded medicines instead of costly branded ones.

Lack of Doctor-Pharmacist Coordination: Doctors sometimes prescribe specific brands, but patients opt for cheaper alternatives recommended by pharmacy staff.

Low Trust in Pharmacies: Due to cases of counterfeit medicines, some customers hesitate to buy from independent pharmacies.

Conclusion

Pharmacy sales in Pakistan face numerous challenges, including strict regulations, economic instability, illegal pharmacies, and changing consumer behavior. The industry must address these issues by improving regulations, ensuring fair pricing, enhancing supply chain management, and promoting public awareness about the importance of purchasing medicines from licensed pharmacies.

Government support, better financial access, and technological advancements like online pharmacy regulation can also help strengthen the industry. By overcoming these obstacles, the pharmacy sector in Pakistan can become more sustainable and provide better healthcare services to the population.